The first week of 2024 was a busy one with earnings reports out from companies including Walgreens (WBA), Conagra Brands (CAG), and Constellation Brands (STZ). Yahoo Finance breaks down the companies’ results and sat down with industry experts to discuss some of the top takeaways. Walgreens (00:00:14) Walgreens' first quarter earnings beat on both the top on bottom lines, with revenue coming in at $36.7 billion, compared to an estimated $35.04 billion, and adjusted earnings per share coming in at $0.66, compared to an expected $0.62. “The company also reiterating its full year earnings guidance, but they did slash their dividend by almost 50 percent, to $0.25 a share in an attempt to strength its balance sheet and cash position,” Yahoo Finance’s Seana Smith explains. Jefferies Healthcare Services Equity Research Brian Tanquilut discusses Walgreens' results. Tanquilut notes “it’s still obviously is not good news when a company cuts their dividend.” “We are facing a weakening consumer environment and that’s translating to obviously headwinds for them. And at the same time, they also called out continuing gross margin pressure from payers cutting reimbursement for drugs that are dispensed at their retail pharmacy.” Conagra Brands (00:01:07) Yahoo Finance’s Brooke DiPalma breaks down earnings results from Conagra Brands. The company cut its 2024 guidance, now expecting “adjusted earnings per share to be in the range of $2.60 to $2.65. That's compared to a prior projection of $2.70 to $2.75. Now it does also expect organic net sales to decrease this year, in the range of 1 to 2 percent, compared to its earlier forecast, to grow about 1 percent,” DiPalma notes. The company is also “announcing new advertising investments focused on their biggest brands,” as well as a focus on “innovation.” Constellation Brands (00:01:56) “It was a very strong result quarter for Constellation in the beer business,” Citi Vice President of Equity Research Filippo Falorni says. “The Modelo Especial brand is the largest brand in the beer division and that grew depletions, which is a measure of volumes, about 12 percent.” “There’s a strength in the overall portfolio,” Falorni notes. “The Bud Light (BUD) controversy this year was... probably the most important driver within the beer industry,” Falorni adds. But from a consumer standpoint, “Modelo Especial didn’t see as much benefit compared to… the other domestic brands, like Coors Light, Miller Lite (TAP)… From a Modelo Especial brand, a lot of the benefit was from a brand recognition.”

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